All Forum Posts by: Harry Metzinger

@David Galan, I do not have direct experience w/ a cash-out refi, but I can tell you that per Fannie Mae, the most you can pull out for a cash-out refi on your primary residence is 80% LTV, and the most you can pull out for a cash-out refi on an investment property is 75% LTV. This is assuming you are refi'ing into a fixed rate mortgage.

Visit https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf for more information

You're welcome @Account Closed, good luck!

Hi @Kristin Linderman, welcome to BP!  I'm not too too far from your neck of the woods.  I definitely recommend downloading and listening to some BP podcasts when you are driving.  While I am not looking to wholesale myself, I just listened to a wholesaling podcast the other day (BP Podcast #91) to learn more about what makes a successful wholesaler.  Josh Dorkin & Brandon Turner put together a podcast each week which is entertaining, educational, and inspiring.  Also, our local real estate investors association is SJREIA.  I recommend checking out more info on SJREIA.org.  Between BiggerPockets and SJREIA, you will be on your way to accomplishing your real estate investing goals.  

Hi @Joey Hand, welcome to BP!  Good to see South Jersey folks on the site.  While you are driving in your car, I definitely recommend downloading and listening to some BP podcasts.  Josh & @Brandon Turner put together a super podcast each week.  It is entertaining, educational, and inspiring.  I manage to listen to 2-3 podcasts per week and they help me stay focused and energized to accomplish my real estate investing goals.  Also, look into joining our local real estate investors association, SJREIA.  More info can be found at SJREIA.org

@Account Closed , it's a 5 year draw w/ a 10 year repayment period. The way AMHFCU explained it to me, as an example, if you draw from your HELOC one year after establishing it, you would pay off the HELOC over a 14 year period.

American Heritage FCU does offer an interest-only HELOC at a rate which is half a percent higher than the same HELOC terms for principal + interest. Up to 90% LTV, the current rate for an interest only HELOC is currently 3.99%. For a HELOC at up to 95% LTV, the current rate is 4.49%. HELOC rates are subject to change.

One aspect I failed to understand originally is, for the 95% LTV HELOC, the higher rate applies to the entire HELOC, not just the 90-95% LTV portion. So as a hypothetical, let's say your house is worth $100K and your primary mortgage (1st lien) is $80K. If you took out an interest only HELOC for $15K, the 4.49% rate would apply to all $15K, not just the $5K that takes you from 90% LTV to 95% LTV. Make sense?

Another great aspect of AMHFCU's HELOCs that I failed to mention before - when I applied in February, there were no origination or appraisal fees. That's important to consider. If Lender A offers HELOCs at a lower percentage than Lender B, but Lender A charges you a few hundred dollars to establish the line of credit and Lender B has no origination or appraisal fees, is the lower rate offered by Lender A really a better deal? Note though that one of the AMHFCU reps I spoke to said they would eventually roll out a $200 HELOC origination fee. Not sure if that's started yet?

Hi @Account Closed, I have a HELOC w/ American Heritage Federal Credit Union. I would suggest taking a look at them. www.amhfcu.org Their rates are competitive but in my opinion, the greater benefit is how much they are willing to let you borrow on a HELOC. I have a HELOC w/ them at 95% LTV on my primary residence...with the intention to eventually use it to help fund the purchase of an investment property. (I thought their appraisal of my house was a little low...so probably came out to 92-93% LTV, but that's neither here nor there.) I was hard pressed to find another lender willing to offer above 85% LTV. Their rate is 0.5% higher for a HELOC at 95% LTV than a HELOC at 90% LTV. I have not drawn from it yet, but it seems fairly straightforward to access the funds once you're ready.

Hi @Carolyn Paige, welcome to BP!  You've come to the right place.  There is a Diversified Real Estate Investors Group (commonly known as DIG) for investors in the Philadelphia area.  Check out their site at digonline.org.  Joe Scorese, if you're out there, feel free to chime in w/ more information about DIG for Carolyn.

Thanks John.

Thanks for chiming in @Ricky Gibson, hopefully you will share your findings when you start to notice a pattern.

@John Rogers I am curious why Saturday morning?  Good advice though.  I am a licensed real estate agent.   Are you saying my broker will be notified but not me personally?  I am recognized as the agent submitting the bid for each of my offers.

@Lisa Monnig Thanks for the feedback.  I know a South Jersey investor who owns some rental properties in Delaware due to the stark differences in taxes.  My wife already thinks I'm a little crazy for targeting properties nearly a half hour from where we live, so I doubt PA or DE investing is in our immediate future, but eventually...maybe...

Hi @Julian Orsuto, thanks for chiming in.  Appreciate your feedback.  While rules of thumb are nice, agree that it may not be wise to totally accept or reject an investment based on them alone.  In this case, the instant equity built into the purchase may justify a lower cap number.  I will email you this afternoon...this is worth a follow up discussion.

@Patrick Liska thanks for the encouragement.

@Saroosh Ahmed congrats on taking the plunge into BP!  Lots of great advice on here.  Don't be afraid to create your own posts.  We all started somewhere.  I'm still in the beginning of my real estate investing journey.  I lived in Franklin Park for a year...that was about 8-10 years ago.  Nice area.  Don't know how taxes are there relative to South Jersey, but if they are similar, I feel your pain!